NNPC will remain globally competitive, says Baru

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Baru, says the corporation will remain globally competitive.

Baru said this in a statement by the NNPC Spokesman, Mr Ndu Ughamadu, on Thursday in Abuja.

According to the statement, Baru was addressing the corporation’s staff via a mail broadcast to commemorate his two-year anniversary at the helm of affairs of the NNPC.

Baru, who described his two years in the saddle as “exciting”, said since he was appointed by President Muhammadu Buhari, he had enjoyed a great level of support from all staff in moving the corporation forward.

”Going forward, our priority will be to remain globally competitive.

”In pursuing this, we will ensure the gradual transition of NNPC from an integrated oil and gas company to an energy company.

“‘We will also review our business models to reflect current operations reality with improved profitability, transparency and accountability as the cornerstone,” he said.

Baru said his administration would ensure improved collaboration with local communities, states, local governments and relevant agencies, improved security and safety of personnel and infrastructure.

Listing his achievements, Baru said the corporation had sustained production level from the nation’s assets to above average of two million barrels per day in 2018.

He said aside securing approval and signing off the novel financing structure with Schlumberger for the NNPC/First Exploration and Production Joint Venture, the corporation maintained commitment to repayment of cash calls arrears where about $1 billion of $5 billion indebtedness were settled.

In the midstream sub-sector, Baru observed that NNPC had remained a critical gas supplier to the domestic market with a dominant market share and supporting government’s gas-to-power initiative.

It is currently supplying an average of 720MMscf/day, representing about 47 per cent of total gas supply to the domestic gas market.

He said under his watch, the nation celebrated a record highest peak power generation of 5,222mw on Dec. 18 2017 with 76 per cent of the generated power from thermal power plants.

”Gas supply to industries has also increased with an average daily supply of about 450 mmscfd.

”In addition, we kicked off the 614 km Ajaokuta-Kaduna-Kano (AKK) pipeline project, after obtaining FEC approval for the EPC of the Ajaokuta-Kaduna-Kano gas pipeline on 13th December 2017.

”The pipeline on completion is expected to deliver gas to the ongoing Abuja, Kaduna and Kano Power Plants with the potential to generate additional 3,600MW to the national grid.”

In the downstream, Baru said milestone had also been achieved in rehabilitating and putting back on stream key downstream infrastructure critical to sustaining smooth and cost effective distribution of petroleum products across the country.

”Products supply availability was sustained across the country through a combination of Direct Supply Direct Purchase initiative and Forex provision to pre-qualified third-party importers,” he said.

On the refineries, Dr. Baru said in spite of the numerous challenges, the refineries remained operational and strategic in their contribution to petroleum products availability to support domestic supply across the nation.

He stated that other key achievements of his leadership included institutionalising increased transparency in the bidding process for crude oil term contracts, marine contracts and attracting investors into critical areas of the Nigeria Oil and Gas Industry.

Baru charged the staff of the corporation not to rest on their oars, saying they should work towards making NNPC a great organisation that would be the pride of its founding fathers.

Baru was appointed the 17th Group head of NNPC by President Buhari on July 4, 2016.